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Tariffs

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h3lblad3
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Post: #1
Tariffs

I hate ask yet another question, but alas...

Anyway, would it be possible to fund a country completely on tariffs?
I mean, if I reduce taxes on capital, acquisition, and excise, would I be still be able to fund the country with high tariffs?

Or is this something I'm just going to have to try and die with? Hehe

05.06.2012 23:34
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Titian
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Post: #2
RE: Tariffs

theoretically this should be possible in the game.
I'm not sure how the game matrix actually looks like, but IRL such a policy could cause massive problems depending on the economic structure of your country (availability of natural ressources (regenerating and and non-regenerating), unemployment, infrastructure, invested capital (e.g. factories etc)).
A (generalized) consequence of such a tariff policy in the real world would be a much lower standard of living than previously under a free trade regime.


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This post was last modified: 21.06.2012 19:57 by Titian.

05.06.2012 23:53
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Helsworth
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Post: #3
RE: Tariffs

h3lblad3 Wrote:
I hate ask yet another question, but alas...

Anyway, would it be possible to fund a country completely on tariffs?
I mean, if I reduce taxes on capital, acquisition, and excise, would I be still be able to fund the country with high tariffs?

Or is this something I'm just going to have to try and die with? Hehe

You can increase it over 100%, however your economy will have to be down right competitive. The figure of your PE will also factor in. I recommend using the most powerful template state in the game to try this out and doing this via budget changes and task options instead of radical reforms.


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06.06.2012 07:08
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Rising Phoenix
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Post: #4
RE: Tariffs

It is completely possible, the problem is that tariffs are only collected if you trade, and a country with such high tariffs might have trouble specifically doing that.

06.06.2012 17:37
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h3lblad3
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Post: #5
RE: Tariffs

I was hoping that the lack of other taxes would increase the buying power to the point that they could afford it.
I hadn't thought of other countrys, though.
GOSH DARN IT, WHY CAN'T YOU ALL BE LIKE ME!? Motz

06.06.2012 17:41
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Helsworth
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Post: #6
RE: Tariffs

h3lblad3 Wrote:
I was hoping that the lack of other taxes would increase the buying power to the point that they could afford it.
I hadn't thought of other countrys, though.
GOSH DARN IT, WHY CAN'T YOU ALL BE LIKE ME!? Motz

It does, however you still need to make wise task choices in order to make your domestic products competitive. I have applied the protectionism reform for instance on states that were power house exporters and afterwards I still held the advantage, a little even more so. While at the same time having big PE and very mild taxation, 0% capital, under 10% acquisition and a mild excise.


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This post was last modified: 06.06.2012 18:26 by Helsworth.

06.06.2012 18:24
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Lord Alexander
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Post: #7
RE: Tariffs

h3lblad3 Wrote:
Anyway, would it be possible to fund a country completely on tariffs?
I mean, if I reduce taxes on capital, acquisition, and excise, would I be still be able to fund the country with high tariffs?

Right now only one nation in the game has extremely high Tariffs – German America. Its Acquisition and Excise taxes are very modest, but even under such conditions Tariffs generate less than one third of its income. Even under best circumstances Tariffs are very inefficient source of income. I believe that the only way to balance the budget that is solely based on income from Tariffs is to minimize expenses. You will need Private Healthcare, Anarcho-Capitalism and/or Liberalism.

06.06.2012 23:27
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h3lblad3
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Post: #8
RE: Tariffs

Well, thanks guys.

Instead of making a new thread on this, I guess I'll just ask here:
Why is it that having high numbers of unionists on here cause low wages?
Being in a family in which my father is an ex-union man, he'd throw a fit if he read that. So obviously, I don't know much about it. So... what causes the low wages?

21.06.2012 03:35
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Lord Alexander
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Post: #9
RE: Tariffs

h3lblad3 Wrote:
Why is it that having high numbers of unionists on here cause low wages?

Are you sure that it is really the case?

The only explanation I can invent is that when wages are high less people see the need to join the labor unions so the amount of Unionists begins to decrease.

21.06.2012 03:55
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Helsworth
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Post: #10
RE: Tariffs

Your income tax is over 30%. Labor isn't being stimulated. That's the reason for the lower net incomes, not unionist figure Wink


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21.06.2012 06:11
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